dependency theory

(1957)

First formulated by American economist Paul Baran (1910-1964), dependency theory proposes that, where a developing country for the most part specializes in producing one good (usually agricultural) for export, an exploitative relationship develops in which its financial and economic resources are controlled by the local elite and the international economy.

Also see: demographic transition

Source:
P Baran, The Political Economy of Growth (New York, 1957);
A G Frank, Dependent Accumulation and Underdevelopment (London, 1978)

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